GIBSON CORPORATION Profit Variance Analysis Actual Manufacturing Variances Marketing and Administrative Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget $ 873,600 S 93,600F S 780,000 S 109,200F $ 670,800 $ 62,192 x U Sales revenue Variable costs: Manufacturing Marketing and administrative Contribution margin Fixed costs: Manufacturing Marketing and administrative Operating profit 192,192 78,624 $ 602,784 S $ 624 U 624U 130,000 X 4,160 U 78,000 10,920U 572,000 $ 102,440 F 134,160 67,080 469,560 $ 62,192 x U s 30,784 % U $ $ $ 10,000F 0 258,320 146,740 197,724 57,300U 57,924U olol 268,320 89,440 214,240 $ S 0 102,440 X 268,320 89,440 111,800 $ $ 52,192 X U $ $ S 16,516 XF $ $ A new accounting intern at Gibson Corporation lost the only copy of this period's master budget. The CFO wants to evaluate performance for this period but needs the master budget to do so. Actual results for the period follow. 130,000 units $873,600 Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit 192,192 78,624 $602,784 258,320 146,740 $197,724 The company planned to produce and sell 111,800 units for $6.00 each. At that volume, the contribution margin would have been $469,560. Variable marketing and administrative costs are budgeted at 10 percent of sales revenue. Manufacturing fixed costs are estimated at $2.40 per unit at the normal volume of 111,800 units. Management notes, "We budget an operating profit of $1.00 per unit at the normal volume." Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis